Transportation
Ethiopia Seeks French Firms to Take Over Long-Halted AKH Railway Project
Seetao 2026-07-28 15:21
  • The restart of railway projects will improve the northern road network and reshape the regional transportation pattern
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This 392 kilometer railway started construction as early as 2015, but was stalled for six years due to war and contract disputes. After a cross-border arbitration dust settled, Ethiopia began looking for new partners, hoping to revitalize the project and connect the northern transportation trunk line with French capital and technological strength.

Arbitration dispute

The total investment of Awash Kombolcha Haragbeya railway is about 1.7 billion dollars. It was initially contracted by Türkiye's Yap ı Merkezi, and will be shut down in 2020. The two parties subsequently fell into a dilemma of huge claims. Türkiye's contractor claimed 979.9 million dollars plus 9% interest, and Ethiopia claimed 1.6 billion dollars in reverse. In May 2026, the London Court of International Arbitration rejected most of Turkey's claims, clearing the way for project restart. Keywords: AKH Railway, Ethiopian Railway

Connecting with French forces

The Ethiopian Railway Company has proactively connected with the French Development Agency and multiple railway companies, and the French consulting agency has conducted on-site assessments in the area. Ethiopia hopes to join hands with Systra again, and Alstom is expected to participate in the construction of signal systems. This line connects multiple cities and, upon completion, connects with existing railway channels, significantly enhancing the freight transportation capacity in northern Ethiopia.Editor/Min Jing

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